My checklist when bottom fishing for stocks
Jean Park – March 20, 2019
"I don't panic about recent market volatility, partly because it's allowed me to go bottom fishing for what I think are solid long-term values," says Jean Park, portfolio manager of Fidelity® Growth Strategies Fund (FDEGX).
Park says much of her bargain hunting has focused on stocks that have fallen 20% or more from recent highs and that are backed by companies with substantially more cash on their balance sheets than debt.
One such example is Copart (CPRT), which Park considers the country's leading auctioneer of salvage vehicles. She purchased shares following an earnings miss in September that touched off a selloff of more than 20%.
According to Park, Copart faces limited competition and has pricing power—as well as a strong balance sheet.
She adds that the company has benefited from a rich supply of salvage cars, partly because insurance companies are choosing to designate newer, technology-packed autos that get into crashes as "salvage," rather than having them repaired.
In December, Park established a stake in mobile food-ordering company Grubhub (GRUB) after noting a late-year slide for the stock.
"I think Grubhub can grow substantially, represents a long-term opportunity, and, like Copart, has a notable net cash position that could provide the company some financial flexibility," Park says.
Grubhub and Copart are overweight positions as of January 31.
Learn more about this manager and her fund
Jean Park is the portfolio manager of Fidelity® Growth Strategies Fund, which held securities mentioned in this article on January 31, 2019. As of this date, Copart composed 1.06% of fund assets and Grubhub composed 0.77% of fund assets.
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